A Scheme Review for the Better

Consolidated Timber Holdings

Consolidated Timber Holdings Ltd (CTH) is a group of customer focused, innovative, forward thinking companies, which import, distribute and process sustainable timber and timber products. They excel in providing a range of products, services and solutions that fulfil the diverse requirements of the construction and joinery markets.

Alan Stead, Company Secretary, (CTH) believes Creative Benefits “found the solution” to what seemed an insurmountable issue.

"Our pension arrangements are a little unusual in that we have a legacy hybrid occupational scheme." explains Alan "The Final Salary component closed some years ago and was replaced by a Money Purchase accrual in a new scheme section. That section also closed a few years ago with accumulated funds within it of about £500k."

CTH’s problem was to find a solution to the Defined Contribution Section which whilst offering members limited investment options was also hampered by underperforming funds. To add to these problems CTH were locked in by high transfer penalties which they felt they had no option but to accept.

On appointment as Scheme Advisers Creative Benefits immediately started to work closely with the company and trustees in finding a solution.

Their first task was to successfully negotiate the removal of the transfer penalties, closely followed by transferring all scheme members, without fuss, to a greater choice of investment funds with a better performing insurer, who also act as administrators and actuaries for the Defined Benefit Section. This exercise was carried out by a detailed communication programme to inform members exactly what was being done for them, with a series of group presentations and individual consultations.

"Since many of our members are within 10 years of      retirement a review of investments and a greater understanding of risk were most welcoming and previously lacking.” says Alan Stead “The whole exercise was account managed very well and completed within weeks of giving Creative the go ahead; a job well done – and without the trustees incurring undue additional costs!"

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